Savvy Trades and Investments

[valuemind]

SSKILLZ1: ETCC is the good example why allowing trades in Pick 4 Contest may lead to manipulation and make winning the Contest misleading and meaningless. KIK switched a position into ETCC at 1.46 for the Contest yesterday. Today at noon he posted a message here with only positive things about ETCC. Soon afterwards ETCC's stock price rose sharply. But he failed in mentioning any warning signs on ETCC's annual report: 1) ETCC has been in business for decades, but it has never distributed dividend to its common shareholders, it has cumulated deficit $17 million, its long term debt far more than cash, and it has accumulated Series E prefer share dividend obligation $5,34 million, there it is the long term assets destroyer for its common shareholders; 2) For the fiscal 2024, even if it produced $1.82 earning including prefer share dividend, its operating cash flow was negative -$3.7 million; 3) Its contracts largely are fixed cost, and thus may occur significant loss during high inflation period: 4) most of new contract and revenue are from foreign countries rather than USA, which may have high risk; 5) it is listed on pink sheet meaning high fraud risk, as its auditor wrote on its annual report "Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists..." You can see here: https://www.otcmarkets.com/otcapi/company/financial-report/405619/content.

ETCC has very small float only 3.64 million, daily trading volume was used only a few hundreds or a few thousands. One small shareholder could move its share price significantly by spend a few thousands only. So It could rise significantly in short term, with famous KIK's endorsement. But I believe it will go back below $1 in long term more likely than not. I am willing to put $1000 to bet with anyone disagree.